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A Manufacturer of Machinery Currently Produces Equipment for a Single

Question 15

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A manufacturer of machinery currently produces equipment for a single client.The client supplies all required raw material on a no-cost basis.The manufacturer contracts to complete the desired units from this raw material.The total production costs incurred by the manufacturer are correctly identified as:


A) Prime costs.
B) Conversion costs.
C) Variable production costs.
D) Factory overhead.

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